Correlation Between Malaga Financial and Solarmax Technology
Can any of the company-specific risk be diversified away by investing in both Malaga Financial and Solarmax Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Malaga Financial and Solarmax Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malaga Financial and Solarmax Technology Common, you can compare the effects of market volatilities on Malaga Financial and Solarmax Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Malaga Financial with a short position of Solarmax Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malaga Financial and Solarmax Technology.
Diversification Opportunities for Malaga Financial and Solarmax Technology
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Malaga and Solarmax is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Malaga Financial and Solarmax Technology Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solarmax Technology and Malaga Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Malaga Financial are associated (or correlated) with Solarmax Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solarmax Technology has no effect on the direction of Malaga Financial i.e., Malaga Financial and Solarmax Technology go up and down completely randomly.
Pair Corralation between Malaga Financial and Solarmax Technology
Given the investment horizon of 90 days Malaga Financial is expected to generate 0.09 times more return on investment than Solarmax Technology. However, Malaga Financial is 11.38 times less risky than Solarmax Technology. It trades about 0.02 of its potential returns per unit of risk. Solarmax Technology Common is currently generating about -0.03 per unit of risk. If you would invest 2,216 in Malaga Financial on August 27, 2024 and sell it today you would earn a total of 60.00 from holding Malaga Financial or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.57% |
| Values | Daily Returns |
Malaga Financial vs. Solarmax Technology Common
Performance |
| Timeline |
| Malaga Financial |
| Solarmax Technology |
Malaga Financial and Solarmax Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malaga Financial and Solarmax Technology
The main advantage of trading using opposite Malaga Financial and Solarmax Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malaga Financial position performs unexpectedly, Solarmax Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Solarmax Technology will offset losses from the drop in Solarmax Technology's long position.| Malaga Financial vs. MF Bancorp | Malaga Financial vs. United Bancorporation of | Malaga Financial vs. Harbor Bankshares | Malaga Financial vs. BankFirst Capital |
| Solarmax Technology vs. Western Sierra Mining | Solarmax Technology vs. Teleflex Incorporated | Solarmax Technology vs. Rumble Inc | Solarmax Technology vs. Qualys Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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